Salary Payment Currency under the New UAE Labour Law
HLB UAE Payroll Team
Salary payment currency refers to the currency in which the organization actually pays salaries to its employees as remuneration for the services they offer. Each nation has its own regulations on the payment currency to be applied for processing payroll. If specified in the employment contract, salary payment may be made in either Emirati Dirhams, the UAE’s official currency, or in any other currency.
Arab Emirates dirham, the official currency of Dubai and the other Emirates, is referred to by its currency acronym, or AED. It is frequently shown with the letters Dhs or DH. The United Arab Emirates Central Bank is responsible for printing the nation’s currency.
According to Article 22 of Federal Decree-law no 33 of 2021, salary shall be paid in UAE’s official currency i.e AED or any other currency upon agreement between both the employer and employee in an employment contract. UAE law has provided the freedom of choice to private sector companies to choose their payment currency in salary, but this should be mentioned clearly in the employment agreement.
Frequently Asked Questions
Can a company pay their employee salary in USD or any other foreign currency?
Yes, as per the new UAE labor law; the company has the option to use USD or any other currency for salary payment. But this should be clearly written in the employment agreement between the employee and the company.
Is there any specific pay date in UAE which is to be considered as the pay date?
There is no such specific pay date in UAE; company can decide this as per company policy.
How is non-AED payment processed through WPS salary transfer?
There is no option to process non-AED payments through WPS, according to the existing WPS salary upload file template used by banks. For more info about WPS, Click here.
What is the minimum salary payable in UAE?
There is no minimum salary payable in UAE.
Can the employee demand a salary in any currency from the employer?
No, an employee has no right to demand a salary in any particular currency unless the same currency is mentioned in the employment contract.
Can the employer change the payment currency of an employee’s salary without his\her consent?
No, an employer has no right to change the payment currency of an employee’s salary without employee consent. Moreover, the company must pay the salary in the same currency that is mentioned in the employment contract.
Relevant article regarding “payment currency” from New UAE Labor Law (Federal Decree Law No 33 of 2021):
Article 22: The salaries shall be paid in UAE Dirham and may be paid in another currency if it is agreed upon between both parties in the employment contract.
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